Cloudflare: ResistanceBy expanding the green wave 3, NET recently stretched above the resistance at $117.70. However, the stock only briefly surpassed this level before encountering selling pressure, which pushed it back to its early December levels. Primarily, we expect the price to overcome this resistance to complete the green five-wave structure and, thus, the orange wave iii. A still ongoing wave alt.ii correction remains a possibility in the context of our 30% likely alternative scenario.
Net
Cloudflare (NET) AnalysisCompany Overview:
Cloudflare NYSE:NET , a global leader in cybersecurity, content delivery networks (CDN), and edge computing, is well-positioned to capitalize on increasing digital transformation and growing demand for secure, efficient cloud infrastructure.
Key Growth Catalysts:
Strategic AI Partnerships 🤝
Cloudflare’s collaboration with Microsoft Azure enhances its AI infrastructure, fostering innovation and bolstering its competitive edge in enterprise cloud solutions.
Zero Trust Leadership in Cybersecurity 🔐
Cloudflare’s Zero Trust platform addresses growing enterprise needs amid rising cyber threats and increased remote work adoption.
Advanced threat intelligence and access controls make it a leader in next-gen cybersecurity solutions.
Edge Computing & IoT Opportunities 🌐
Edge computing solutions are experiencing strong adoption, fueled by:
Growing demand for 5G networks and the IoT revolution.
The edge computing market is projected to reach $87.3 billion by 2026.
Cloudflare’s focus on reducing latency and enhancing network efficiency positions it to capture market share.
Global Expansion & Untapped Markets 🌍
New data centers in underserved regions expand Cloudflare’s global reach, improving service delivery and unlocking revenue opportunities in untapped markets.
Investment Outlook:
Bullish Stance: We are bullish on NET above $90.00-$91.00, supported by strong positioning in AI, cybersecurity, and edge computing, coupled with robust global expansion strategies.
Upside Target: Our price target is **$145.00-$150.00
Technical Analysis on Cloudflare (NET)Cloudflare ( NET ) experienced exponential growth between 2020 and 2021, followed by a sharp decline in 2022. This decline halted around a support level at approximately $40, which has been tested multiple times as a key level.
Recently, the stock broke through a significant volume area, also surpassing a key resistance level that had been tested multiple times in the past.
Bullish Scenario
Currently, it appears to be in a retest phase. If this level can hold as new support, the stock could continue its upward trend, with an initial target around $130.
Bearish Scenario
If the retest fails, as it did in April 2024, the stock may retrace toward the POC area, located around $60. A move below this key level would increase the likelihood of a further decline toward the critical $40 support, previously tested multiple times, where it could attempt to stabilize once again.
Cloudflare Plummets 18% After Disappointing Revenue OutlookCloudflare Inc. shares ( NYSE:NET ) fell by 18.35% after the company's second-quarter revenue projections fell short of analysts' expectations. The company estimated revenue to be between $393.5 million and $394.5 million in the second quarter, with the midpoint missing analysts' estimates of $394.5 million. This has raised concerns about the company's ability to maintain its current growth rate. Cloudflare ( NYSE:NET ) and its peers have faced headwinds in recent months as businesses scaled back IT spending.
Despite this, the company posted adjusted earnings of 16 cents per share, up from a year earlier and beating analysts' estimates of 13 cents. Its first-quarter sales of $378.6 million beat analysts' estimates of $373.7 million.
Analysts believe that Cloudflare ( NYSE:NET ) is taking share from rivals with cloud-based offerings on its content-delivery network, and a sales-force restructuring has gained traction. New product launches and larger enterprise accounts may help the company maintain steady revenue growth.
Technically, Cloudflare ( NYSE:NET ) stock is trading below the 200-day Moving Average (MA) forming a downward gap that occurred as a result of the disappointing revenue outlook. the stock is trading with a Relative Strength Index (RSI) of 25.74 which is arguably oversold.
$PANW – Looks like it may have bottomedNASDAQ:PANW This cybersecurity leader got beat-up on the last earnings report. It looks to me that it may have bottomed out. On this weekly chart (the week is still young) it is in the process of setting up as an inside week. It is regaining the 40 Week MA which I view as important. Additionally, the volume has been declining since the big sell-off. I take that to mean that the selling pressure is over or about over. I am going to be patient with this one and look for it to close above that 40-week MA. If it does, I will look at a lower timeframe chart for a good entry where I can find a good risk reward entry.
For now, it is on my watchlist as a B+ set-up in the making.
The chart I am using is the All-In-One LevelUp tool available here on TV. Check it out.
Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
Cloudflare $Net - Will it swing into a 150%-200% move?Cloudflare NYSE:NET - Will it swing into a 150%-200% move? Cloudflare has a long way to run if it gets back to the all-time high. Price it trading above the EMAs even though we are in a pullback. If it pulls back into the EMAs, it could swing into a 150% - 200% move back to the all-time high. Cyber security will always be a concern. If Cloudflare can continue to solve those problems, especially with the quantum computing threat, Cloudflare will be relevelent.
NET - And another Cup & HandleNET formed a beautiful Cup & Handle and breaking out of it.
54 would have been optimal entry but not too late. This has 2x - 3x potential from here.
Too many confluences here -
1. Based over 75 and forming a Bull Flag on weekly timeframe.
2. Bouncing on 200 Week EMA
3. Over the 2021 ATH VWAP & IPO VWAP
4. The mighty 3rd wave in-progress
Long here with stop loss 75
For now let's target conservatively.
Target #1 110
Target #2 130
HUBS - running since the big earnings beat in NovemberHUBS on the 3 0 minute chart has been trending up since the last earnings. It is above the high
volume area of the volume profile. Basically it is so trong it is not attracting any short sellers.
Waves of new buyers buy from the float or from those who are collecting their profits and
making room for others. I got a share as a test with the dip the first week of January and
another today. I see this as intermediate term swing trade. If earnings is a huge beat again,
I will get a third share when I see a dip or fade and then another before the next earnings.
Options can be played for those with large risk capital on the sidelines. Seemingly, although
HUBS does not get headlines a great gain is a reasonable potential.
The Advantage of a Quick Exit: MACD Crossover StrategyIn the tumultuous world of trading, the quest for a strategy that consistently yields high returns is the Holy Grail. The MACD Crossover Strategy, as demonstrated in the provided chart, showcases a compelling approach: maintain a low profitable rate but achieve a high net profit by exiting trades quickly to minimize losses.
The Strategy at a Glance
This strategy utilizes the Moving Average Convergence Divergence (MACD) alongside a Weighted Moving Average (WMA) as the main indicators for trade entry and exit points. The conditions for buying and selling are set as follows:
Buy Condition: A buy signal is generated when the MACD line crosses over the signal line, and the close price is above the WMA line.
Sell Condition: A sell signal occurs when the MACD line crosses under the signal line.
The simplicity of these conditions allows for quick decision-making and the execution of trades, which is crucial for the strategy's success.
Low Profit Rate with High Net Gains
The provided performance summary reveals a profitable rate of only 35.92%. This percentage might seem unappealing at first glance. However, the net profit tells a different story, boasting a substantial gain of 632.15%. This disparity is due to the strategy's core principle: cut losses quickly and let profits run, albeit for a short time.
The Power of Quick Exits
The success of this strategy hinges on the swift exit from losing trades. The average trade gain is a modest $20.46, and the average number of bars in trades stands at 4, indicating a rapid turnover rate for positions. By exiting losing positions promptly, the strategy ensures that any one loss does not significantly impact the overall capital.
Moreover, the strategy shows a max drawdown of 37.15%, which is an acceptable risk for many traders considering the high net return. The Profit Factor of 2.675 illustrates that the total profits are over two and a half times the size of the total losses.
Implementing the Strategy
To implement this strategy effectively, a trader needs to:
Set precise conditions for entry and exit points. The conditions should be based on clear indicators and should not be subject to interpretation to allow for quick decision-making.
Employ a disciplined approach to trade execution. Once a sell condition is met, the position must be closed immediately, without second-guessing.
Accept the win rate. Not every trade will be profitable, and that's part of the strategy. The focus should be on the overall profitability, not the outcome of individual trades.
Monitor the trades closely. Due to the fast-paced nature of the strategy, it is vital to keep a close eye on market movements and execute trades as soon as conditions are met.
Conclusion
The MACD Crossover Strategy is a testament to the fact that a high win rate is not the sole indicator of a profitable trading approach. By accepting more losses and swiftly minimizing them, a trader can still come out significantly ahead. This strategy requires discipline and a cool head to execute quickly, but for those who master it, the rewards can be substantial.
NET / Cloudfare Pre-Earnings before the big beat Trade ReviewNET on the 15-minute chart demonstrates the swing-long trades of this past week. 5-6 entries
and 3-4 exits- accumulating a few shares at a time and closing only one at a time to gradually
average up. The setup is explained in the chart textboxes. Using TV indicators for line crossing
alerts to minimize the effort of time. Trade is still open and following the trend of price action.
NET reached orbit in the last-minute run-up before the big earnings beat. Nine shares
and one call contract on the ready for the launch with advanced planning. It was good enough
for now. The call contract will come off the table before the NY lunch hour. The shares will run
the weekend and be on watch for over-extension and fade next week.
Cloudflare Shares Spike 8% After Upbeat First-Quarter Forecasts
Cloudflare Inc. (NYSE: NYSE:NET ) has recently announced its first-quarter revenue and profit forecasts, surpassing market estimates. The company's optimistic outlook is fueled by the growing demand for its cloud and content delivery services, reflecting a broader trend of enterprises accelerating their digital transformations. Let's delve into Cloudflare's (NYSE: NYSE:NET ) financial projections, recent performance, and market outlook, providing insights into the company's position in the rapidly evolving cloud computing landscape.
1. Strong Q1 Revenue and Profit Projections:
Cloudflare (NYSE: NYSE:NET ) anticipates first-quarter revenue to range between $372.5 million and $373.5 million, exceeding analysts' expectations. Projected adjusted earnings stand at 13 cents per share, higher than the consensus estimate of 12 cents. Meanwhile, the robust forecasts underscore Cloudflare's (NYSE: NYSE:NET ) confidence in its ability to capitalize on surging demand for cloud and cybersecurity services.
2. Factors Driving Growth:
Demand Surge: The accelerated digitization of operations by enterprises has led to a surge in demand for cloud and cybersecurity services. Cloudflare stands to benefit from this trend, offering a suite of website and application services tailored to modern digital workflows.
Client Retention: Cloudflare's emphasis on client retention as a driver of topline growth is underscored by significant wins in both new customer acquisitions and renewals, as highlighted by CEO Matthew Prince.
Resilience Against Cyber Threats: Despite facing attempted cyber intrusions, Cloudflare (NYSE: NYSE:NET ) has demonstrated resilience, with minimal operational impact. This resilience enhances the company's reputation for robust cybersecurity infrastructure.
3. Financial Performance:
- Fourth-quarter revenue soared by 32% to $362.5 million, surpassing analyst expectations.
- Adjusted earnings per share stood at 15 cents, further exceeding analyst forecasts.
- Cloudflare's impressive financial performance reflects its ability to effectively leverage market opportunities and deliver value to shareholders.
4. Technical Outlook:
Positive Momentum: Cloudflare (NYSE: NYSE:NET ) is experiencing positive momentum, evident from its rising trend channel in the medium to long term. Cloudflare (NYSE: NYSE:NET ) stock recently broke out of a rectangle formation, indicating potential further upside towards the $133 mark or beyond.
5. Market Position and Outlook:
Competitive Landscape: Cloudflare operates in a competitive landscape dominated by evolving technological trends and innovations. However, its focus on delivering robust cloud and cybersecurity solutions positions it favorably among competitors. With increasing reliance on cloud-based services and cybersecurity infrastructure, Cloudflare (NYSE: NYSE:NET ) is poised for sustained growth. The company's proactive approach to innovation and customer-centric solutions bodes well for its long-term prospects.
Conclusion:
Cloudflare's optimistic revenue and profit forecasts, coupled with its resilient financial performance and positive technical outlook, underscore its position as a key player in the cloud computing and cybersecurity sectors. As enterprises continue to prioritize digital transformation initiatives, Cloudflare (NYSE: NYSE:NET ) is well-positioned to capitalize on evolving market dynamics and deliver value to shareholders in the foreseeable future.
Cloudflare: Downhill 🏂In the chart of Cloudflare, the last high should have set the top of the orange-colored wave b, which we count as a sub-wave of the larger (ii) in blue. Accordingly, we expect another setback to below the support at $75.50, where the reversal should finally be initiated in the blue Target Zone (coordinates: $67.96 - $57.11). Prices within this range can be used to enter long positions. Only a significant breach of the resistance at $86.91 would convince us that the price will rise imminently with wave alt. (i) in blue. This option is 33% likely.
$NET near pivotCloudflare develops software for firewall, routing, traffic optimization, load balancing, and other network services
IS ranked #1 in its industry by IDB and has a IBD relative strength rating of 94.
research.investors.com
NYSE:NET is looking very good, it just gapped up after a flag patter and is on its way to new highs
A close above $87.75 would be my signal to buy with a target sell at $110
I'd use the gap zone as support zone to place my stop just below it, is good risk-reward.
Cloudflare: Above the Clouds ☁️Cloudflare shares have continued their strong rise over the past few days, overcoming resistance at $72.00. This development was an important step on the upward journey and should generate further upward momentum. The magenta wave (iii) should be continued up to around $92.
Cloudflare Eyes Growth From Artificial Intelligence InvestmentsFrom a technical view, NET stock owns a 76.07 buy point from a consolidation. For more aggressive investors, there's a lower 66.24 buy point — the Nov. 7 high. NET stock has cleared resistance in the 66 trading area. A 5% buy zone extends to 69.55.
Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. When the company released third-quarter earnings for NET stock on Nov. 2, management updated analysts on its AI infrastructure plans.
NET Stock: Deploying Nvidia AI Chips
As of Oct. 31, Cloudflare told analysts it had deployed "inference-optimized" Nvidia (NVDA)-made GPUs in 75 cities. It plans to deploy the Nvidia chips in 100 cities by the end of 2023.
In 2024, Cloudflare aims to deploy the Nvidia AI chips in 300 locations worldwide. The AI networking cards are simply plugged into computer server PCI slots, lowering capital spending needs.
Cloudflare Q3 Earnings Beat
In addition, Cloudflare has set a long-term goal of $5 billion in annual recurring revenue, or ARR, from subscription-based services. Its 2022 revenue stood at $975.2 million.
Cloudflare earnings for the quarter ending Sept. 30 were 16 cents a share, up 166% from 6 cents a year earlier.
Revenue climbed 32% to $335.6 million, the San Francisco-based company said. Analysts predicted profit of 10 cents a share and revenue of $330.5 million.
In Q3, Cloudflare said it added 206 new large customers that spend more than $100,000 annually. It ended the quarter with 2,558 large customers, up 34% from a year earlier.
Price Momentum
NET is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
$CYBR 3 Weeks Tight / Breakout & RetestIDX:CYBR is in the internet security business and this sector is looking healthy. I like this one for several reasons. First, it is in an upward sloping trend channel. It has just closed in a 3-week tight pattern. CYBR has also been testing the area of resistance to the upside for a few months. It broke out 6 weeks ago but did not have the volume. However, it did have a volume pocket pivot 3 weeks before that. Since that break-out it has come back to retest the upward sloping channel line and broke out again from that resistance area.
I do not have a position, but I will be looking to start one if the market is positive next week and this moves above $169 where I have my alert. All TBD.
Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
NET - Horizontal Trend Channel🔹Rectangle formation between support at 40.60 and resistance at 68.20.
🔹Support 52 and next resistance 130.
🔹Technically NEUTRAL for the medium long term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️